eToro offers U.S. clients Bitcoin, Ethereum, and Bitcoin Cash only

eToro and the U.S. Securities and Exchange Commission reached a settlement of $1.05 million following claims that it had violated federal securities laws. American users can only trade Bitcoin, Ethereum, and Bitcoin Cash as of right now.

The trading platform has 187 days to sell its current holdings and offboard all other cryptocurrencies in compliance with the September 12 ruling,  Customers will receive proceeds based on their balance.

eToro delisted (XRP) and three other cryptocurrencies in 2020 in reaction to the SEC’s lawsuit against Ripple. The business’s cryptocurrency services did, however, continue outside the world’s largest economy. The company has CySEC CASP approval to provide digital asset facilities within the European Union.

In the meantime, a broad crackdown by the SEC and other American regulatory watchdogs was maintained on the developing blockchain industry. Since 2013, the SEC has fined cryptocurrency firms more than $7.4 billion.

According to the SEC’s complaint, eToro operated a clearing agency and broker without a license since 2020.  The exchange refused to acknowledge or refute the SEC’s claims. The enforcement division head of the SEC, Gurbir S. Grewal, stated that eToro’s collaboration opens up a method for other cryptocurrency middlemen to abide by US regulations.

Although the platform did not discuss whether cryptocurrencies are secure, the settlement could serve as a model for similar lawsuits in the future. Distinguishing Bitcoin, Ethereum, and BCH from other cryptocurrencies implies that the SEC considers most digital assets as securities.